eCommerce Final

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Using prebuilt templates is typically one of the most cost-effective choices when building a Web site.

TRUE

Wireless Web technology reduces barriers to Internet access.

TRUE

Barriers to entry into the e-tail marketplace are high.

FALSE

Bundling is the process of creating multiple versions of a good and selling essentially the same product to different market segments at different prices.

FALSE

Display ads produce the highest click-through rates.

FALSE

Most first movers have the complementary resources needed to sustain their advantage.

FALSE

Online retailing is one of the largest segments of the retail industry.

FALSE

Online shoppers tend to browse for available products rather than search for specific products they have determined in advance.

FALSE

The major impact of Internet real estate sites is in enabling online-only property transactions.

FALSE

Which of the following age groups has the highest percentage of Internet access? A) 18-29 B) 30-49 C) 50-64 D) 65+

A) 18-29

Which of the following is an example of the subscription revenue model? A) Ancestry.com B) eBay C) Amazon D) Twitter

A) Ancestry.com

________ refers to the ability to ensure that e-commerce participants do not deny their online actions. A) Nonrepudiation B) Authenticity C) Availability D) Integrity

A) Nonrepudiation

A system design has two main components: A) a logical design and a physical design. B) a behavioral design and a technological design. C) business objectives and technology requirements. D) front-end systems and back-end systems.

A) a logical design and a physical design.

What are the two most important management challenges in building a successful e-commerce site? A) developing a clear understanding of business objectives and knowing how to choose the right technology to achieve those objectives B) having an accurate understanding of your business environment and an achievable business plan C) building a team with the right skill sets and closely managing the development process D) identifying the key components of your business plan and selecting the right software, hardware, and infrastructure for your site

A) developing a clear understanding of business objectives and knowing how to choose the right technology to achieve those objectives

Which of the following forms of online advertising typically has the highest click-through rate? A) e-mail marketing in-house list B) interstitials C) search engine keyword purchase D) sponsorships

A) e-mail marketing in-house list

The two different types of online catalogs are: A) full-page spreads and grid display. B) web-based and direct mail. C) multi-item display and single-item display. D) rich media/video and display.

A) full-page spreads and grid display.

CTR is a measure of the: A) percentage of times an ad is clicked. B) number of times an ad is served. C) number of http requests. D) number of pages viewed.

A) percentage of times an ad is clicked

Acquisition rate is a measure of the: A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages. B) percentage of visitors who become customers. C) percentage of existing customers who continue to buy on a regular basis. D) percentage of shoppers who do not return within a year after their initial purchase.

A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages

A Crayola arts and crafts column on a parenting Web site is an example of what form of advertising? A) sponsorship B) banner swapping C) affiliate relationship D) public relations

A) sponsorship

In order from beginning to end, the major steps in the SDLC, are: A) systems analysis/planning; systems design; building the system; testing; and implementation. B) systems design; testing; building the system; and implementation. C) systems analysis/planning; systems design; building the system; implementation; and testing. D) systems analysis/planning; implementation; building the system; and testing.

A) systems analysis/planning; systems design; building the system; testing; and implementation.

Which of the following types of online market segmentation and targeting involves tracking the actions users take on a Web site? A) technical B) behavioral C) contextual D) psychographic

A) technical

Above all, e-commerce is a(n) ________ -driven phenomenon. A) technology B) government C) marketing D) user

A) technology

E-commerce can be defined as: A) the use of the Internet and the Web to transact business. B) the use of any Internet technologies in a firm's daily activities. C) the digital enablement of transactions and processes within an organization. D) any digitally enabled transactions among individuals and organizations.

A) the use of the Internet and the Web to transact business.

Which of the following activities is the one engaged in by the highest percentage of online users? A) using e-mail B) using a search engine C) researching products and services D) reading news

A) using e-mail

Legitimate e-mail addresses based on a high-quality commercial opt-in e-mail list might cost ________ per thousand. A) 50 cents to $1 B) $5 to $10 C) $50 to $100 D) $500 to $1000

B) $5 to $10

A typical response rate for an e-mail campaign would be ________ percent. A) 2 B) 5 C) 25 D) 50

B) 5

________ refers to the ability to identify the person or entity with whom you are dealing on the Internet. A) Nonrepudiation B) Authenticity C) Availability D) Integrity

B) Authenticity

Which of the following companies utilizes a transaction fee revenue model? A) WSJ.com B) E*Trade C) Twitter D) Sears.com

B) E*Trade

________ are the types of information systems capabilities needed to meet business objectives. A) Information requirements B) System functionalities C) System design specifications D) Physical design specifications

B) System functionalities

All of the following products are considered durable goods except: A) automobiles. B) clothing. C) appliances. D) furniture.

B) clothing.

Which of the following basic system functionalities is used to display goods on a Web site? A) product database B) digital catalog C) shopping cart system D) customer database system

B) digital catalog

A firm's ________ describes how a firm will produce a superior return on invested capital. A) value proposition B) revenue model C) market strategy D) competitive advantage

B) revenue model

Which of the following measures the average length of stay at a Web site? A) loyalty B) stickiness C) recency D) retention rate

B) stickiness

All of the following are factors in contributing to the increase in cybercrime except: A) the ability to remotely access the Internet. B) the Internet's similarity to telephone networks. C) the ability to anonymously access the Internet. D) the Internet is an open, vulnerable design.

B) the Internet's similarity to telephone networks.

The addresses used by browsers to identify the location of content on the Web are called: A) domain names. B) uniform resource locators. C) IP addresses. D) Hypertext Transfer Protocol.

B) uniform resource locators

Which of the following advertising messages is a branding communication? A) Try Adobe Acrobat Professional 10 free for 30 days. B) Free shipping on every item we sell. Buy two or more items to qualify. C) Barnesandnoble.com: The Best Place to Buy Textbooks. D) 50 percent off all calendars. Shop now while supplies last.

Barnesandnoble.com: The Best Place to Buy Textbooks.

Which of the following statements is not true about the broadband audience? A) It is clearly different than the dial-up audience. B) It is more educated and wealthier than the dial-up audience. C) It is less intensely involved with the Internet. D) It is more middle-aged than the dial-up audience.

C) It is less intensely involved with the Internet.

Which of the following measures the ratio of items purchased to product views? A) conversion rate B) cart conversion rate C) browse-to-buy ratio D) view-to-cart ratio

C) browse-to-buy ratio

Which of the following is not a unique feature of e-commerce technology? A) interactivity B) social technology C) global broadcasting D) richness

C) global broadcasting

A(n) ________ profile describes an individual's set of needs, drives, motivations, perceptions and learned behaviors. A) psychographic B) opinion C) psychological D) lifestyle

C) psychological

All of the following are major business trends in e-commerce in 2011-2012 except for: A) Facebook, Twitter, and other social networks continue to grow. B) localization of e-commerce expands. C) search engine marketing is eclipsed by the mobile advertising platform. D) consumer packaged goods begin to find their online market.

C) search engine marketing is eclipsed by the mobile advertising platform.

Which of the following helps you understand the marketing effectiveness of your e-commerce site? A) shopping cart B) product database C) site tracking and reporting system D) inventory management system

C) site tracking and reporting system

________ is a model of computing in which firms and individuals obtain computing power and software applications over the Internet, rather than purchasing and installing it on their own computers. A) Client/server computing B) P2P computing C) Broadband computing D) Cloud computing

D) Cloud computing

Which of the following is an example of the affiliate revenue model? A) Yahoo B) eBay C) Gap.com D) MyPoints

D) MyPoints

Which of the following is not an example of a social network? A) Twitter B) LinkedIn C) Facebook D) Wikipedia

D) Wikipedia

All of the following are basic functionality provided by Web servers except: A) site management tools. B) data capture tools. C) security services. D) a shopping cart.

D) a shopping cart.

Which of the following segments of the U.S. retail industry is the smallest? A) consumer durables B) gasoline and fuel C) specialty stores D) online retail

D) online retail

Which element of the business model addresses the question of why a customer should buy from the firm? A) revenue model B) competitive advantage C) market strategy D) value proposition

D) value proposition

As economists had envisioned, prices of products sold on the Web are consistently lower than elsewhere and the online marketplace is characterized by decreasing price dispersion.

FALSE

A value proposition defines how a company's product or service fulfills the needs of a customer.

TRUE

Cookies, when combined with Web bugs, can be used to create cross-site profiles.

TRUE

Credit cards are the dominant form of online payment throughout the world.

TRUE

E-commerce as we know it today would not exist without the Internet and the World Wide Web.

TRUE

E-commerce is a major conduit and generator of offline commerce.

TRUE

Groupon is an example of local commerce.

TRUE

Households with incomes of below $75,000 are obtaining Internet access at faster rates than households with incomes above that level.

TRUE

In 2011, the number of online buyers is around 150 million.

TRUE

In order to accept payments by credit card, online merchants must have a merchant account established with a bank or financial institution.

TRUE

In the United States, banks, insurance firms, and brokerage firms are prohibited from having significant financial interests in one another.

TRUE

Online advertising methods include banner ads, video ads, and referrals.

TRUE

Online career sites are being threatened by both job search engines and aggregators.

TRUE

Over 70 million households now use online banking.

TRUE

PayPal requires the recipient of a payment to have a PayPal account to receive funds.

TRUE

Price is the top factor in online purchase decisions.

TRUE

Research shows that the two most important factors shaping the decision to purchase online are utility and trust.

TRUE

Search engine advertising continues to be the dominant form of online advertising, but its rate of growth is slowing somewhat compared to other formats.

TRUE

The amount spent on online advertising in 2011 accounts for approximately 20 percent of the total amount spent on all advertising.

TRUE

The annual maintenance cost for a Web site is likely to be as high as its development cost.

TRUE

The easiest and least expensive way to prevent threats to system integrity is to install anti-virus software.

TRUE

The online mortgage industry has transformed the process of obtaining a mortgage.

TRUE

The power of suppliers is a key industry strategic factor.

TRUE

The sole purpose of marketing communications is sales.

TRUE

The terms revenue model and financial model can be used interchangeably.

TRUE


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